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Uswitch comments on CPI impact on telecoms bills

Ernest Doku, telecoms expert at Uswitch.com, comments: “Millions of mobile and broadband customers will now know the scale of the bill increases they face this spring.

“Providers often link their annual price rises to January’s consumer price index (CPI) or the retail price index (RPI). Despite a slight easing this month, both are near the highest they’ve been for 40 years, with the latest CPI at 10.5% and RPI at 13.4%. 

“This means many telecoms customers can expect to see their mobile and broadband bills rise by at least 14% in April.

“For example, a household receiving their broadband from BT currently on a £30-a-month contract will see their bills rise by more than £50 a year from the spring. Meanwhile someone on a £75-per-month mobile handset deal with EE would face an annual rise of about £130.

“Providers are taking different approaches to price rises this year so consumers should pay close attention to their contract terms. 

For example, Sky Broadband customers that signed up in autumn last year were able to lock into a contract with a price freeze throughout 2023. However Three, which last year did not impose inflation-linked rises, is now applying an annual rise to new mobile customers of the CPI rate plus 3.9%

“If you are worried about how these price rises affect you, review the terms and conditions of your contract or double-check with your provider to see what might be in store.

“Consumers cannot predict the scale of these rises when they sign up for a deal, which places all of the risk onto them. We firmly believe providers who impose inflationary increases should allow customers to leave their contract early without penalty, or offer contracts where the price remains fixed for the duration.

“Customers who find themselves facing rises should also be ready to vote with their feet. If you are out of contract on your deal, now is the perfect time to refresh your deal or move to a new provider altogether. 

“If you have less than six months left on your contract, you may find it pays to make an early switch. While many providers will charge you an exit fee for leaving a deal early, the cost of your remaining term could be less than you would save by taking out a cheaper offer. 

“According to Uswitch data, broadband customers on average can save £162 a year by switching their provider, while customers on pay-monthly mobile deals can save an average of £321 annually by moving their handset over to a SIM Only contract.” 

FOR MORE INFORMATION

Richa Kundnani
Phone: 07789 316116
Email: richa.kundnani@rvu.co.uk
Twitter: @UswitchPR

About Uswitch 

Uswitch is one of the UK’s top comparison websites for home services switching, including broadband, mobiles, SIM Only and insurance. We’ve saved consumers over £2.5 billion off their bills since we launched in September 2000.

In 2022, Uswitch launched its free mobile app, Utrack, to help consumers manage their home energy costs. By connecting to their smart meter, users can track their energy usage hourly, get dynamic insights and calculate potential savings with handy tips. 

Uswitch is part of RVU, a global group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.